TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates.

While plenty of high-yield opportunities exist, investors must always consider the safety of their dividend and the total return potential of their investment. It is not uncommon for a struggling company to suspend high-yielding dividends which could subsequently result in precipitous share price declines.

TheStreet Ratings' stock rating model views dividends favorably, but not so much that other factors are disregarded. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e. how much one is willing to risk in order to earn profits?; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to its stock's performance.

These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. As always, stock ratings should not be treated as gospel — rather, use them as a starting point for your own research.

The following pages contain our analysis of 3 stocks with substantial yields, that ultimately, we have rated "Hold."

Solar Senior Capital

Dividend Yield: 9.20%

Solar Senior Capital

(NASDAQ:

SUNS

) shares currently have a dividend yield of 9.20%.

Solar Senior Capital Ltd. is a business development company specializing in investments in leveraged, middle-market companies in the United States. The fund invests in the form of senior secured loans, including first lien, unitranche, and second lien debt instruments. The company has a P/E ratio of 15.22.

The average volume for Solar Senior Capital has been 24,700 shares per day over the past 30 days. Solar Senior Capital has a market cap of $177.3 million and is part of the financial services industry. Shares are up 1.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Solar Senior Capital

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 6.9%. Since the same quarter one year prior, revenues rose by 29.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for SOLAR SENIOR CAPITAL LTD is currently very high, coming in at 75.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 43.51% significantly outperformed against the industry average.
  • SOLAR SENIOR CAPITAL LTD has improved earnings per share by 47.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SOLAR SENIOR CAPITAL LTD reported lower earnings of $1.02 versus $1.11 in the prior year. This year, the market expects an improvement in earnings ($1.34 versus $1.02).
  • Net operating cash flow has significantly decreased to $0.09 million or 98.16% when compared to the same quarter last year. Despite a decrease in cash flow of 98.16%, SOLAR SENIOR CAPITAL LTD is still significantly exceeding the industry average of -428.75%.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Capital Markets industry and the overall market, SOLAR SENIOR CAPITAL LTD's return on equity is below that of both the industry average and the S&P 500.

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Blueknight Energy Partners

Dividend Yield: 9.20%

Blueknight Energy Partners

(NASDAQ:

BKEP

) shares currently have a dividend yield of 9.20%.

Blueknight Energy Partners, L.P. provides integrated terminalling, storage, processing, gathering, and transportation services for companies engaged in the production, distribution, and marketing of crude oil and asphalt products in the United States. The company has a P/E ratio of 20.67.

The average volume for Blueknight Energy Partners has been 56,700 shares per day over the past 30 days. Blueknight Energy Partners has a market cap of $204.3 million and is part of the energy industry. Shares are down 7.7% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Blueknight Energy Partners

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 34.4%. Since the same quarter one year prior, revenues slightly increased by 1.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 42.79% is the gross profit margin for BLUEKNIGHT ENERGY PRTNRS LP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.55% significantly outperformed against the industry average.
  • The debt-to-equity ratio is very high at 2.22 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, BKEP maintains a poor quick ratio of 0.73, which illustrates the inability to avoid short-term cash problems.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, BLUEKNIGHT ENERGY PRTNRS LP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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Navios Maritime Partners L.P

Dividend Yield: 20.00%

Navios Maritime Partners L.P

(NYSE:

NMM

) shares currently have a dividend yield of 20.00%.

Navios Maritime Partners L.P. owns and operates dry cargo vessels in Europe, Asia, North America, and Australia. The company has a P/E ratio of 10.91.

The average volume for Navios Maritime Partners L.P has been 593,900 shares per day over the past 30 days. Navios Maritime Partners L.P has a market cap of $734.4 million and is part of the transportation industry. Shares are down 18.8% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Navios Maritime Partners L.P

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 11.8%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for NAVIOS MARITIME PARTNERS LP is currently very high, coming in at 96.04%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.10% is above that of the industry average.
  • NMM's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.26 is sturdy.
  • Net operating cash flow has decreased to $42.10 million or 47.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 62.74%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.86% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

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